Polyus Gold share sale to be probed by Takeover Panel

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A $4bn deal that would see Russian billionaires Zemlin Mutsoyev and Gavrill
Yushvayev take a 38pc in London listed gold miner Polyus Gold is to be
investigated by the Takeover Panel.

The regulator is looking at whether the deal by the two investors to buy
Mikhail Prokhorov’s stake in Polyus would create a concert party. If it is
decided the two Russians are working in concert it would force the pair to
make a mandatory offer for the company.

The Panel is also understood to be looking at the relationship between Mr
Mutsoyev and Mr Yushvayev and the other major shareholder in Polyus,
Suleiman Kerimov.

Reports on Tuesday suggested the deal to buy the 38pc stake was far from
finalised. However, if it does go ahead the acquisition could see Polyus
Gold merged with rival gold mining group Polymetal International (Other OTC: POYYF - news) .

Mr Kerimov is understood to be interested in creating what could be the
largest gold mining company in the world. With the backing of Mr Mutsoyev
and Mr Yushvayev, the plan has more credibility.

“I think Kerimov has in mind creating the largest gold company in the world
... like Uralkali is the largest fertilizer company,” Andrey Tretelnikov, an
analyst at Rye, Man and Gor told Reuters.

Together the two companies, both London listed, would be worth close to $18bn
(£11.4bn).

Mr Kerimov has recently raised $3bn through the sale of bonds in his potash
group Uralkali. As well being a succesful businessman with assets in mining,
property and oil, Mr Kerimov is a prominent in Russian politics both on the
local and national scene.

In a trading update earlier this week Polyus reported a 12pc increase in gold
production last year to what it said was a record 1.68m ounces.

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